San Leon Energy (LON:SLE) (research restricted) (SLE, 21.5p) announced that wholly owned Polish subsidiary Oculis Investments was awarded the 603.40km2 Szczawno Concession in the Baltic Basin onshore northern Poland and across portions of license blocks 151 and 152. The License is valid for up to 5 years and covers a work programme which includes geological studies, seismic acquisition and a one well drilling obligation. The license also has an optional 3D seismic survey and an additional two wells.
On 23 March 2010, Oil India Limited ("OIL") and Indian Oil Corporation Limited ("IOC") announced that they had approached the Board of Gulfsands Petroleum (LON:GPX) (HOLD, £3.00) (GPX, 288.75p, %u25BC (9.77%)) with an indicative offer proposal at 315p per Gulfsands share which included a request that the Board of Gulfsands permit OIL and IOC to conduct a focused due diligence exercise with a view to making a formal offer in due course. Since the Board of Gulfsands has not engaged with OIL, IOC or their advisers in a due diligence exercise, OIL and IOC announce that they do not intend to make an offer to acquire the entire issued share capital of Gulfsands.
Comment: It has always been our view that the 315p offer fairly valued Gulfsands and that 400p level announced by the Board of Gulfsands at the onset was unlikely to be met by potential bidders. The Indian consortium has therefore shown a commendable discipline in their strategic intent and we can only agree with the course of action they have taken. This is likely to take the froth off investor’s appetite for consolidation stories but does not put into question value driven M&A in the sector. We continue to see fair value at 300p and maintain a Hold rating.

 Mining Corporate News

Medusa Mining (LON:MML) (274p) announced that it has discovered a new outcropping porphyry copper-gold target named Usa. The target has so far been defined by reconnaissance outcrop sampling over an area of approximately 500 metres by 500 metres with possible extensions. Rock chip values range up to 0.59% copper and 0.42 g/t gold.
Sunrise Diamonds Plc (LON:SDS) (0.68p) announced that it has secured a three year option agreement to acquire a 100% interest in the previously producing Long Lake Gold Mine located 20km south-west of the City of Sudbury, Ontario (Canada). The claims also cover…

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